UPDATE: Bond ETF inflows top $100 billion for 2017
By Ryan Vlastelica
It's first time inflows have broke 12-digit barrier in a calendar year
Exchange-traded funds, which have hit record after record in terms of assets and adoption in 2017 (http://www.marketwatch.com/story/how-the-etf-industry-became-a-4-trillion-juggernaut-2017-05-10), can add another milestone to the list.
Easily shattering the move that occurred over all of 2016, year-to-date flows into bond ETFs topped $100 billion this week. This is the first time that bond ETFs have broken the 12-digit barrier in a single calendar year, and they did it with three months to spare.
Over the past week, $2.6 billion has flowed into the category, bringing their 2017 total to $101.9 billion, per FactSet data.
"This record is both a bond story and an ETF story," said Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors. "First, this is about the efficiency and flexibility of using an ETF rather than buying individual bonds. Secondly, there's a desire for both income and a portfolio ballast. Even though the market has been very complacent throughout the year, there's been a significant undertone of geopolitical uncertainty that has rocked sentiment."
Don't miss:How the bond industry changed, 15 years after the first fixed-income ETF (http://www.marketwatch.com/story/how-the-bond-industry-changed-15-years-after-the-first-fixed-income-etf-2017-08-03)
Related: El-Erian warns of ETF contagion risks (https://www.fnlondon.com/articles/el-erian-warns-of-etf-contagion-risks-20170928)